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........................... Persons A and B are roommates. Person A smokes and Person B does not. The index 5 measures how smoky the room is. It

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Persons A and B are roommates. Person A smokes and Person B does not. The index 5 measures how smoky the room is. It varies from 5:0, where there is no smoke in the room, to 5:1, when the room is filled with smoke. Thus, 1-s measures how \"clean" the air in the room is. Person A's utility function is uA(xA,s)=xA+ln('l+s), where XA is the amount of money Person A owns. Person B's utility function is uB(xB,1s)=3xB+2('l-s), where x3 is the amount of money Person B owns. Each person starts with an endowment of 5 units of money. Person A has the legal right to fill up the room with smoke. If Persons A and B can exchange money for the right to smoke and make any deal that would make them both better off, what amounts xA of money Person A be may left with? O a. xA may take the values in[5.693;6.334] O b. xA may only take the value 10 O c. xA may take the values in[6,7] Q d. None of the other answers. 0 e. xA may take the values in[5.4;5.5]

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